Recommendations of Eastern Airlines Bankruptcy (B) The Unions Case Solution

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Recommendations of Eastern Airlines Bankruptcy (B) The Unions Case Study Help

On the basis of above internal and external analysis of the business together with the evaluation of various alternatives, the business is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in worldwide markets with no decrease in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand uniqueness. Nevertheless, it could likewise consider alternative 2 that might allow the business to access the markets without any potential investment. The company could pursue alternative 1 which would enable the business to focus on prospective global markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in business's income. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Eastern Airlines Bankruptcy (B) The Unions Case Help Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the worldwide existence of the business. However, the closing of domestic stores might extremely impact the profits of the firm as above 90% of its stores are located locally and closing those stores would ultimately decrease the revenues of the company. The business has a long term market position in US which can not be generated quickly in the new markets. The alternative would assist the company to broaden in worldwide markets together with the removal of problems raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from global markets.
• Removal of problems associated with variety.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Eastern Airlines Bankruptcy (B) The Unions Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious risk to the market share of business. In this situation the business might think about introducing Click and Recommendations of Eastern Airlines Bankruptcy (B) The Unions Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Uniqueness
• Elimination of the great shop experience.
• Threat of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company could think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of incomes of the company. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Expedition of brand-new international markets.
• Increase in revenue from global markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Extension of problems related to variety.
• Differences in cultures might led to a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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